**Executive Summary**
The Reserve Bank of India (RBI) has released the draft revised Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022. The purpose is to introduce derivatives on credit indices and total return swaps on corporate bonds. Feedback on the draft revised Directions is invited from market participants, stakeholders and other interested parties by February 27, 2026.
**Key Points / Main Content**
* **Issuance:**
* RBI releases the draft revised Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022.
* **Feedback:**
* RBI invites comments from market participants, stakeholders, and interested parties.
* Feedback is requested by February 27, 2026.
* Comments should be submitted via email with a specific subject line.
* **Background and Objectives:**
* The draft aims to facilitate the efficient management of credit risks.
* It aims to improve liquidity and efficiency in the corporate bond market.
* It facilitates the issuance of corporate bonds.
* It is in pursuance of the announcement made in the Union Budget for FY 2026-27.
* The draft regulatory framework enables the introduction of derivatives on credit indices and total return swaps on corporate bonds.
* The draft includes consolidated provisions for all credit derivatives.
**Impact Analysis**
**Market Participants / Stakeholders / Interested Parties**
* **Impact:**
* Opportunity to review and provide feedback on the draft revised directions.
* **Action Required:**
* Review the draft revised Master Direction and submit comments/feedback to RBI by February 27, 2026, via email.
Key Entities Referenced
Reserve Bank of India: Central bank of India, regulator of financial markets.
draft revised Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022: The main subject of the press release, regarding credit derivatives.
Financial Markets Regulation Department: Department within the Reserve Bank of India responsible for regulations related to the financial market.
Statement on Developmental and Regulatory Policies: Referenced policy document that relates to regulatory framework.
Mumbai: Location where the Department of Communication of RBI is located.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 06, 2026
RBI releases draft revised Master Direction – Reserve Bank of India (Credit
Derivatives) Directions, 2022
The Reserve Bank of India has released today the draft revised Master Direction –
Reserve Bank of India (Credit Derivatives) Directions, 2022. Comments on the draft
revised Directions are invited from market participants, stakeholders and other
interested parties by February 27, 2026.
The comments / feedback may be submitted by email with the subject line
“Feedback on Draft Revised Master Direction - Reserve Bank of India (Credit
Derivatives) Directions, 2022”. The feedback may alternatively be forwarded to;
The Chief General Manager
Reserve Bank of India
Financial Markets Regulation Department
9th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort
Mumbai – 400 001
Background and objectives
An active derivatives market can facilitate efficient management of credit risks,
improve liquidity and efficiency in the corporate bond market and facilitate issuance of
corporate bonds across the rating spectrum. Accordingly, in pursuance of the
announcement made in the Union Budget for FY 2026-27 and as stated in the
Statement on Developmental and Regulatory Policies dated February 06, 2026. A draft
regulatory framework to enable the introduction of derivatives on credit indices and
total return swaps on corporate bonds is being issued for public feedback. The draft
includes consolidated provisions for all credit derivatives including existing directions
for credit default swaps. The directions relating to derivatives on credit indices and total
return swaps, on which feedback is being sought, are highlighted.
(Brij Raj)
Press Release: 2025-2026/2062 Chief General Manager